Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
Indian Gold Book:Indian Gold Book - Gold Bars Worldwide
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ORGANISED REFINERS<br />
Although organised refiners are few, the table below records the published charges levied by an organised refiner. The<br />
refining (to 995 purity) and gold loss charges reduce on a graduated scale according to weight.<br />
Assumptions:<br />
<strong>Gold</strong> price US$ 300<br />
Exchange rate Rs 48 per US dollar<br />
Scrap purity K20<br />
PRICING AND PROFITABILITY<br />
GOLD REFINING<br />
Melting and refining gold jewellery<br />
on a gross weight basis Rupees Approximate US dollars<br />
Under 4 kg Rs 40 per 10 g US$ 2.59 per oz<br />
10 kg or more Rs 6 per 10 g US$ 0.39 per oz<br />
<strong>Gold</strong> assaying<br />
Dip muster sample Rs 200 US$ 4.17<br />
Cut sample Rs 100 US$ 2.08<br />
Urgent assay Rs 400 US$ 8.33<br />
Duplicate certificate Rs 50 US$ 1.04<br />
<strong>Gold</strong> loss on refining gold jewellery<br />
on a fine weight basis<br />
Under 5 kg. At 7 g per 1,000 g Rs 26.98 per 10 g refined US$ 1.75 per oz refined<br />
10 kg or more. Nil Nil<br />
The table below indicates the approximate cost of refining old gold jewellery into an assayed, certified and stamped slab of<br />
gold ready for recycling.<br />
Gross weight Rupees Approximate US dollars<br />
Under 4 kg Rs 64.17 per 10 g US$ 4.16 per oz<br />
10 kg or more Rs 8.50 per 10 g US$ 0.55 per oz<br />
SMALL REFINERS<br />
The bulk of the refining of old gold jewellery is undertaken by thousands of small refiners in cities, towns and villages. Both<br />
large and small retailers and fabricators use them as they are so accessible, and their charges are significantly less when<br />
refining small quantities.<br />
Some retailers and fabricators also undertake their own refining in-house. Some recycle old gold jewellery (after assay)<br />
without refining it.<br />
Using the same gold price, exchange rate and scrap purity assumptions, the table below indicates the charge levied by a<br />
reputable small refiner in a major city. It is indicative only. Some small refiners can charge as low as Rs 10 per 10 g when<br />
they retain the silver content.<br />
Category Rupees Approximate US dollars<br />
Melting and refining Rs 15 per 10 g US$ 0.97 per oz<br />
<strong>Gold</strong> loss at 1.5 g per 1000 g Rs 6.36 per 10 g fine US$ 0.41 per oz fine<br />
Assaying Rs 1.50 per 10 g US$ 0.10 per oz<br />
Total cost Rs 22.29 per 10 g US$ 1.44 per oz<br />
Although small refiners are much less expensive for refining small quantities, top end retailers will be obliged increasingly to<br />
use organised refiners to ensure that the purity of recycled jewellery meets hallmarking standards.<br />
160<br />
AN INTRODUCTION TO THE INDIAN GOLD MARKET